AstraZeneca details $50 billion US investment, drug price agreement

AstraZeneca on Thursday detailed its plan to invest $50 billion in the U.S. by 2030 and an agreement with the government to lower some drug prices, as it reported a 10% rise in revenue for the first nine months of the year.

The British drugmaker's total revenue reached $43.24 billion, driven by growth across all its therapy areas, particularly a 16% increase in its oncology division, the company said.

The investment plan, first announced in July, includes a new $4.5 billion manufacturing facility in Virginia where the company broke ground in October.

According to the company, the plant will produce substances for its weight management, metabolic, and oncology drug portfolios.

AstraZeneca also provided details on an agreement with the U.S. administration announced in October, in which it voluntarily agreed to measures that will lower the cost of some prescription medicines for American patients.

The measures will enable patients to access certain medicines at prices equal to those in other wealthy countries, the company said.

As part of the deal, the U.S. Department of Commerce will delay certain tariffs for three years to allow the company to move its manufacturing so that all medicines sold in America are made there.

"We are also delivering on our strategy to strengthen our operations in the United States to power our growth," Chief Executive Officer Pascal Soriot said.

"This includes a historic agreement with the US government to lower the cost of medicines for American patients, and broadening our US manufacturing footprint having broken ground at our new $4.5bn Virginia manufacturing facility in October."

The company reiterated its full-year guidance, expecting total revenue to increase by a high single-digit percentage.

For the first nine months, core earnings per share, which strips out some one-off items, rose 15% to $7.04.